Options
InvestingGlossary term
Definition
Contracts giving the right, but not obligation, to buy (call) or sell (put) an asset at a set price before expiration. Used for speculation, hedging, or income generation.
Related terms
- Call OptionA contract giving the buyer the right (but not obligation) to purchase a stock at a specified price within a specific timeframe. Used for speculation or hedging strategies.
- Put OptionA contract giving the buyer the right to sell a stock at a specified price within a specific timeframe. Used to profit from price declines or protect against losses.
- DerivativesFinancial contracts whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. Includes options, futures, and swaps.
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